Performance Based Logistics

PBL BCA and Product Support Strategic Planning

Talking Brief

This document is confidential and is intended solely for the use and
information of the client to whom it is addressed.

Table Of Contents
 Introduction

 The importance of detailed acquisition planning

 Product Support Strategic Planning

 PBL Review

 PBL BCA

Filename/RPS NumberNDIA.ppt 1

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 Introduction – Product Support Strategic
Planning

 The level of long term product support efficiency is driven by the

thoroughness of acquisition planning.

 A contractor logistics support option (including PBL) does not remove the
requirement to develop a detailed product support plan.

 How organic to organic (Depot, O-level, inventory, technical resources,

etc) and organic to commercial partnerships are developed is critical to
long term program success.

As a general rule of thumb: 70% of a system’s Life

Cycle costs are in Product support / sustainment

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The importance of Product Support Strategic Planning

The majority of life cycle costs are in product support but funding pressures often force
insufficient investment. The following investment decisions can have significant out year
cost implications:
– How much of the logistics planning is handed over to the CLS PBL provider
– The level of business case analysis --- supportability analysis and program cost
projection
– Whether or not to purchase the data package (and the level of effort on the data
package)
– Public to public working agreements and public private partnerships (How well
these are structured and aligned.
– The level of RAM and LSA effort
– Data requirements and the IT effort implemented for long term data collection and
interpretation
– Asset visibility planning
– The training concept
– The level of technical control that is funded for program support (configuration
management, repair process control)

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Product Support Planning Process

Review / Develop Map the Map the

Develop Logistic Status Quo “To-be”
Concept of Performance Logistic
Support
Expectations
Operations concept Concept

Strategy

Performance
Analysis of Implementation Contracting /
Gap Plan MOU’s
Analysis Alternative
Implementation
BCA

Planning Implementation
Product Support is inherently Performance Based:
The purpose of product support plan is to develop management processes and a
support structure that will consistently meet supportability objectives

The Goal is for Logistic Support to Provide the Optimal

Readiness at Affordable Cost

Theoretical curve for any system

al
tim rve
Op rt Cu
o
pp
su
Readiness (%)

Moving toward the optimal

curve requires improving
‹ DoD integration.
today

Cost
($)

3
What is meant by Integration?

(N
we

I n epa
&
.
ing

ve ira
R
The functional areas of logistic

n t bl e
nin plann

or s
support are dependent on each other.

y pa
ces apa ce

g)

M re
s p city
Pro uild c nan

an pa
Example: Priorities of technical

ag rt
lan
b nte

management impact the what, when,

em ma
and how to buy for inventory

en nag
i
pai Ma

Optimal Logistics requirements. These technical

t em
Support priorities also affect capacity, cost,
r/

and “repair versus buy” decision

en
(Re

t)
making at the maintenance facility.

Note: A functional support

Technical Management
(How to repair and build. Priorities provider cannot be held
for technical improvement/refresh) accountable to metrics that
are not under its control.

The Performance Based Logistics Value Proposition…

Improved Integration through:

Performance management
• Aligning incentives • Manage outcomes instead of
• Ensuring competency advantage transactions
• Managing performance • Empower and hold suppliers
accountable to integrate

Result
PBL • Improved readiness
(Optimizing Logistics Support • Reduced logistic
through improved Integration) foot-print
• Reduced cost
“Win-Win”
• Tie supplier profits with
improving warfighter
readiness at reduced cost
Competency Advantage
• Ensure an inherently efficient support construct
• Ensure support provider(s) have technical and
management competency advantages

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Why is understanding the importance of integration so
important?...
Understanding the barriers and enablers to integration is the first step to PBL
strategy development

The PBL strategy should seek to mitigate factors that negatively impact
integration (i.e., decisions or solutions that limit empowerment of the PBL
provider to integrate or that diminish the PBL provider’s level of
accountability)

Common barriers to integration include:

– Contractor/Organic partnerships
– Color of money
– Cultural issues (government and commercial)
– Inherently governmental activities

PBL is the TOOL, Integration is the GOAL

(NDIA – AIA Concept)

STAGE 1 STAGE 2 STAGE 3 STAGE 4

System/
Parts Platform Mission
Delivery Availability Life Cycle Assured
Agreement Focus Process Support

Importance of Integration Increases

Performance-Based
Performance-Based Logistics
Logistics (PBL)
(PBL) is
is not
not aa ““ ONE
ONE SIZE
SIZE FITS
FITS ALL”
ALL”
approach
approach to
to product
product support
support but,
but, the
the common
common themetheme is
is that
that
performance
performance metrics
metrics should
should drive
drive alignment
alignment of of support
support provider
provider with
with
the
the warfighter
warfighter at
at optimal
optimal costs.
costs.

5
 Steps to PBL Development and Implementation

Strategic Life Cycle Change

Planning Support BCA Management
Projection

• Identify barriers & • Project parts consumption • Conduct cost/benefit • Design organizational change
enablers • Project maintenance analysis plan
• Develop alternative requirements • Conduct comparative • Develop cultural change action
Logistic support constructs• Project footprint analysis plan
• Develop PBA metrics requirements • Conduct risk
• Develop off ramp plan • Project readiness assessment
• Develop sub-metrics that • Provide the decision
support readiness support tool

Contract Performance
Management Management

• Execute performance • Conduct Life cycle support updates

contracting • Update BCA to measure PBL
effectiveness
• Manage performance

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Introduction – PBL BCA

 GAO Criticism of DoD PBL implementation

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 US Government Accounting Office (GAO)

HIGHLIGHTS

• DOD emphasizing PBL

• PBL is a Long-term support
strategy
• The PBL alternative must be
validated.

Mission: Ensure the Government programs and initiatives adheres to values of

accountability, integrity & reliability

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PBL Timeline (NDIA – AIA slide -- PBL implementation effort)

29 Months AVG
SOW (19 Months) As Is
BCA (21 Months)
J&A (8 Months)
ALPHA (10 Months)

12 Months AVG
BCA (8 months) To Be
J&A (5 months)
Cost & Time Avoidance
ALPHA (6 months)

• PBL and BCA Education

• Develop streamlined process
• Involve customer and provider in developing assumptions

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Booz Allen PBL BCA follows a phased approach:

Phased Approach Described in Proposal

Phase 1 – Phase 2 – Phase 3 –

Identify Support Business Case Implementation
Alternatives Analysis Plan

• Baseline Existing • Cost Analysis • Schedule for Implementation

Support Concepts
• Benefits Analysis • Strategies to Mitigate Risks
• Determine Support
• Risk & Sensitivity
Objectives & Criteria
Analysis
• Identify PBL Enablers
• Recommendation of
and Barriers
Preferred Alternative
• Develop Support
Alternatives

Process starts with identification of governance authority and key

subject matter experts and stakeholder representatives

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BCA Quals

 PMS 403 (MRUUV)

 NAVSPECWAR Small Arms

 PEO Ground Combat Systems (Bradley Transmission)

 Coast Guard Common BCA Process (Deep Water Program)

 14 BCA’s for Coast Guard Deep Water Program

 TACOM Common BCA Process

 Expeditionary Fighting Vehicle (EFV)

 Talking with B-2 Program Manager

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 Product Support Strategic Planning Quals

 Boeing Missile Defense Program

 Textron Assault Service Vehicle (ASV)

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Booz Allen brings insight and action…

Commercial Booz Allen brings a Government

unique and powerful
Support to major Long standing
PBL perspective that Long standing
DoD contractors support to DoD
is grounded in both support to DoD
and other Fortune acquisition and
commercial and acquisition and
500 companies to logistics community
government logistics
include supply including assisting
experience in order to community
chain management in PBL
provide practical and including assisting
and PBL implementation.
effective Logistics in PBL
negotiation strategy and PBL implementation.
experience solutions

… delivering PBL results that endure

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